Is Sonos Stock a Good Investment?

Sonos Investment Advice

SONO

To provide specific investment advice or recommendations on Sonos Inc stock, we recommend investors consider the following general factors when evaluating Sonos Inc. This will help you to make an informed decision on whether to include Sonos in one of your diversified portfolios:

Examine Sonos' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Sonos' leadership team and their track record. Good management can help Sonos navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Consumer Electronics space and any emerging trends that could impact Sonos' business and its evolving consumer preferences.
Compare Sonos' performance and market position to its competitors. Analyze how Sonos is positioned in terms of product offerings, innovation, and market share.
Check if Sonos pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Sonos' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Sonos Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Sonos Inc is a good investment.

Sell

Buy

Strong Hold

Our advice tool can cross-verify current analyst consensus on Sonos and to analyze the firm potential to grow in the current economic cycle. To make sure Sonos Inc is not overpriced, please validate all Sonos fundamentals, including its revenue, cash flow from operations, current asset, as well as the relationship between the cash per share and beta . Given that Sonos Inc has a number of shares shorted of 9.63 M, we advise you to double-check Sonos Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Not too volatile	Details
Hype Condition	Low key	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Responds to the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Sonos Stock

Researching Sonos' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 91.0% of the company shares are owned by institutional investors. The book value of Sonos was at this time reported as 3.53. The company recorded a loss per share of 0.31. Sonos Inc had not issued any dividends in recent years.

To determine if Sonos is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Sonos' research are outlined below:

	The company reported the previous year's revenue of 1.52 B. Net Loss for the year was (38.15 M) with profit before overhead, payroll, taxes, and interest of 796.37 M.
	Over 91.0% of the company shares are owned by institutional investors
	Latest headline from news.google.com: Disposition of 4684 shares by Patrick Spence of Sonos subject to Rule 16b-3

Sonos uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Sonos Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Sonos' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	6th of February 2024 Upcoming Quarterly Report	View
	8th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	20th of November 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	30th of September 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Sonos' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Sonos' investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2022-05-11	2022-03-31	0.07	0.06	-0.01	14
2024-08-07	2024-06-30	0.01	0.03	0.02	200
2023-08-09	2023-06-30	-0.2	-0.18	0.02	10
2023-05-10	2023-03-31	-0.18	-0.24	-0.06	33
2019-11-20	2019-09-30	-0.22	-0.28	-0.06	27
2023-11-15	2023-09-30	-0.18	-0.25	-0.07	38
2018-11-15	2018-09-30	-0.1	-0.02	0.08	80
2022-11-16	2022-09-30	-0.41	-0.5	-0.09	21

Know Sonos' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Sonos is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Sonos Inc backward and forwards among themselves. Sonos' institutional investor refers to the entity that pools money to purchase Sonos' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Dimensional Fund Advisors, Inc.	2024-09-30	2.5 M
Deroy & Devereaux Private Invmt Coun Inc	2024-09-30	1.7 M
Franklin Resources Inc	2024-09-30	1.6 M
Charles Schwab Investment Management Inc	2024-09-30	1.6 M
Schroder Investment Management Group	2024-06-30	1.5 M
Hawk Ridge Management Llc	2024-09-30	1.5 M
Bank Of New York Mellon Corp	2024-06-30	1.5 M
Aristotle Capital Boston, Llc	2024-06-30	1.5 M
Northern Trust Corp	2024-09-30	1.2 M
Blackrock Inc	2024-06-30	19.5 M
Vanguard Group Inc	2024-09-30	14.7 M

Note, although Sonos' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Sonos' market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.64 B.

Market Cap

1.65 Billion

Sonos' profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.05)	(0.01)
Return On Capital Employed	(0.09)	(0.03)
Return On Assets	(0.04)	(0.01)
Return On Equity	(0.09)	(0.02)

The company has Profit Margin (PM) of (0.03) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.27) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.27.

Determining Sonos' profitability involves analyzing its financial statements and using various financial metrics to determine if Sonos is a good buy. For example, gross profit margin measures Sonos' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Sonos' profitability and make more informed investment decisions.

Sonos' Earnings Breakdown by Geography

Evaluate Sonos' management efficiency

Sonos Inc has return on total asset (ROA) of (0.0313) % which means that it has lost $0.0313 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0805) %, meaning that it created substantial loss on money invested by shareholders. Sonos' management efficiency ratios could be used to measure how well Sonos manages its routine affairs as well as how well it operates its assets and liabilities. As of the 25th of November 2024, Return On Tangible Assets is likely to grow to -0.01. In addition to that, Return On Capital Employed is likely to grow to -0.03. At this time, Sonos' Net Tangible Assets are very stable compared to the past year. As of the 25th of November 2024, Other Assets is likely to grow to about 46 M, while Total Assets are likely to drop about 769.8 M.

	Last Reported	Projected for Next Year
Book Value Per Share	3.48	4.06
Tangible Book Value Per Share	1.97	2.73
Enterprise Value Over EBITDA	54.21	27.44
Price Book Value Ratio	3.49	3.18
Enterprise Value Multiple	54.21	27.44
Price Fair Value	3.49	3.18
Enterprise Value	1.4 B	1.5 B

Leadership effectiveness at Sonos Inc is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.

Beta

2.043

Basic technical analysis of Sonos Stock

As of the 25th of November, Sonos has the Coefficient Of Variation of 744.06, risk adjusted performance of 0.1099, and Semi Deviation of 2.21. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Sonos Inc, as well as the relationship between them.

Sonos' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Sonos insiders, such as employees or executives, is commonly permitted as long as it does not rely on Sonos' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Sonos insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Edward Lazarus over three weeks ago Disposition of 1570 shares by Edward Lazarus of Sonos subject to Rule 16b-3
		Bouvat-merlin Maxime over two months ago Acquisition by Bouvat-merlin Maxime of 22094 shares of Sonos subject to Rule 16b-3
		Christopher Mason over two months ago Disposition of 82424 shares by Christopher Mason of Sonos subject to Rule 16b-3
		Coles Joanna over three months ago Disposition of 905 shares by Coles Joanna of Sonos at 15.0 subject to Rule 16b-3
		Nicholas Millington over three months ago Disposition of 7730 shares by Nicholas Millington of Sonos at 11.275 subject to Rule 16b-3
		Edward Lazarus over three months ago Acquisition by Edward Lazarus of 107511 shares of Sonos subject to Rule 16b-3
		Christopher Mason over three months ago Disposition of 20000 shares by Christopher Mason of Sonos at 11.275 subject to Rule 16b-3
		Coles Joanna over three months ago Disposition of 905 shares by Coles Joanna of Sonos at 15.73 subject to Rule 16b-3
		Bouvat-merlin Maxime over six months ago Disposition of 15573 shares by Bouvat-merlin Maxime of Sonos at 16.5414 subject to Rule 16b-3
		Christopher Mason over six months ago Disposition of 20000 shares by Christopher Mason of Sonos at 11.275 subject to Rule 16b-3
		Coles Joanna over six months ago Disposition of 905 shares by Coles Joanna of Sonos at 19.16 subject to Rule 16b-3
		Patrick Spence over six months ago Disposition of 21957 shares by Patrick Spence of Sonos at 11.26 subject to Rule 16b-3

Sonos' Outstanding Corporate Bonds

Sonos issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Sonos Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Sonos bonds can be classified according to their maturity, which is the date when Sonos Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MGM Resorts International Corp Bond US552953CD18	View
	AerCap Global Aviation Corp Bond US00773HAA59	View

View All Sonos Corporate Bonds

Understand Sonos' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Sonos' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1099
	Market Risk Adjusted Performance	0.2636
	Mean Deviation	2.01
	Semi Deviation	2.21
	Downside Deviation	2.36
	Coefficient Of Variation	744.06
	Standard Deviation	2.43
	Variance	5.89
	Information Ratio	0.0805
	Jensen Alpha	0.1656
	Total Risk Alpha	(0.07)
	Sortino Ratio	0.0827
	Treynor Ratio	0.2536
	Maximum Drawdown	10.4
	Value At Risk	(3.52)
	Potential Upside	4.04
	Downside Variance	5.58
	Semi Variance	4.87
	Expected Short fall	(2.16)
	Skewness	(0.09)
	Kurtosis	(0.69)

	Risk Adjusted Performance	0.1099
	Market Risk Adjusted Performance	0.2636
	Mean Deviation	2.01
	Semi Deviation	2.21
	Downside Deviation	2.36
	Coefficient Of Variation	744.06
	Standard Deviation	2.43
	Variance	5.89
	Information Ratio	0.0805
	Jensen Alpha	0.1656
	Total Risk Alpha	(0.07)
	Sortino Ratio	0.0827
	Treynor Ratio	0.2536
	Maximum Drawdown	10.4
	Value At Risk	(3.52)
	Potential Upside	4.04
	Downside Variance	5.58
	Semi Variance	4.87
	Expected Short fall	(2.16)
	Skewness	(0.09)
	Kurtosis	(0.69)

Consider Sonos' intraday indicators

Sonos intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Sonos stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0205
	Daily Balance Of Power	(0.04)
	Rate Of Daily Change	1.0
	Day Median Price	13.52
	Day Typical Price	13.51
	Market Facilitation Index	0.28
	Price Action Indicator	(0.04)
	Period Momentum Indicator	(0.01)
	Relative Strength Index	55.82

Sonos Corporate Filings

F4	19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
13A	14th of November 2024 An amended filing to the original Schedule 13G	View Verify
8K	13th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
13A	20th of September 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934	View Verify

Sonos time-series forecasting models is one of many Sonos' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Sonos' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Sonos Stock media impact

Far too much social signal, news, headlines, and media speculation about Sonos that are available to investors today. That information is available publicly through Sonos media outlets and privately through word of mouth or via Sonos internal channels. However, regardless of the origin, that massive amount of Sonos data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Sonos news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Sonos relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Sonos' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Sonos alpha.

Sonos Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Sonos can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Sonos Inc Historical Investor Sentiment

Investor biases related to Sonos' public news can be used to forecast risks associated with an investment in Sonos. The trend in average sentiment can be used to explain how an investor holding Sonos can time the market purely based on public headlines and social activities around Sonos Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Sonos' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Sonos and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Sonos news discussions. The higher the estimate score, the more favorable the investor's outlook on Sonos.

Sonos Corporate Management

Patrick Spence	Chief Commercial Officer	Profile
Matthew Siegel	Chief Commercial Officer	Profile
Edward Lazarus	Chief Legal Officer and Corporate Secretary	Profile
Michael Groeninger	Vice Finance	Profile
Shamayne Braman	Chief Officer	Profile
Ruth Sleeter	VP Officer	Profile
Dunja LaRosa	Chief Officer	Profile

When determining whether Sonos Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sonos' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sonos Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sonos Inc Stock: